Getting an agreement in principle for a mortgage is a crucial step towards securing your dream home. However, many prospective buyers often wonder if they can still be declined a mortgage even after receiving an agreement in principle.

The answer is yes; you can still be declined a mortgage after an agreement in principle. An agreement in principle is a preliminary agreement between you and your lender whereby your lender agrees to lend you a certain amount of money based on your income, expenses, and credit score. However, it is not a guarantee that you will receive the mortgage, as there are still a few things that could impact your ability to receive a mortgage.

One reason why you may still be declined a mortgage is if there have been changes in your financial circumstances since you received the agreement in principle. This could include a change in employment status, a significant decrease in income, or an increase in debts. These changes could affect your affordability and could result in your lender declining your mortgage application.

Another reason why you may still be declined a mortgage is if there are issues with the property you are looking to purchase. Your lender will carry out a valuation survey to determine the property`s value and may decline your mortgage application if the property is not worth the amount you are requesting to borrow. Alternatively, your mortgage application could be declined if there are legal issues with the property, such as disputes with neighbors or boundary disputes.

Moreover, your credit score can also affect your ability to secure a mortgage even after receiving an agreement in principle. Your lender will carry out a credit check before approving your mortgage application, and if your credit score has significantly decreased since you received the agreement in principle, your lender may decline your application.

In conclusion, while receiving an agreement in principle for a mortgage may increase your chances of securing a mortgage, it is not a guarantee. Changes in your financial circumstances, issues with the property, or a decrease in your credit score can all affect your ability to secure a mortgage, even after receiving an agreement in principle. It is crucial to maintain your financial status until the mortgage is formally approved to ensure a smooth and successful mortgage application process.